Why Advertise on TV? Beyond the Hype: TV Advertising's Enduring Effectiveness in a Digital World
The Grand Death of Linear TV has been prophesied since the internet came along. Yet, more than three decades into the WWW boom and at least half of that into the explosion of streaming, nothing’s as black and white as many would believe.
If you're here looking for a quick answer to the question of whether traditional TV advertising is still effective, it's "yes."
There is nuance, however, and it's important to be aware of it if you're looking to invest your money in TV ads. And that is precisely what we're going to explore in this article.
Is TV advertising still effective?
Yes, TV advertising is still effective from every perspective.
If you're specifically thinking of linear (traditional) advertising, then yes, it is still effective. If you're thinking of CTV (connected TV), then that's effective, too.
According to data collected at Simulmedia, 73% of all American households watch linear TV, 84% stream content on their TVs, and 57% do both. More relevant, American households watch an average of 4+ hours of ad-supported TV daily. That includes linear TV and connected TV (CTV), with 78% of all this time dedicated to linear TV (which is almost all ad-supported!).
It might seem everyone's on their phones, but data tells a different story: one where TV (be it linear or connected) is still a very relevant medium for brands that want to deliver a message. Of course, TV advertising has changed (if anything, even linear TV is now more data-driven than ever, and CTV ad availability is growing by the year.) But at the end of the day, TV ads will always be about trust and exposure. Done right, it will always be effective.
TV advertising vs social media advertising and banner ads
Research shows the average internet user spends around 2 hours and 23 minutes daily on social media. That is, undoubtedly, a lot of time spent scrolling, so it's no wonder that $270 billion was spent on social media ads in 2023.
Social media advertising comes with plenty of benefits, for sure:
- It's easy to set up (no need for a big budget, either)
- It can be extremely targeted
- It's relatively easy to track results and optimize your campaigns.
Social ads are undoubtedly advantageous – but they are also getting increasingly more expensive. Meanwhile, TV ads are seen as untargetable and unattributable.
That is not the case, though. You can target modern TV ads through data-driven linear techniques so they’re shown to a good swath of the audience that’s likely to buy from you. And you can definitely measure the impact of your efforts, too (yes, even for those “awareness” campaigns.) TV ads can also trigger a halo effect on your social media ads – because once the show is over, and the remote control’s on the table, people will always turn to Facebook, Tiktok, and Instagram for one last scroll before they turn in, and they may prove more receptive to engaging with your ad after having recognized your brand from the big screen.
Your social efforts, banner ads, and your TV ads can and should work in tandem. They are not mutually exclusive, and neither of them is outdated. They are part of the funnel. Instead of looking at them as opposites or competitors, marketers should see them as complementary: where a TV ad delivers the main message (and builds trust, brand affinity, and so on), a banner ad can serve as a reminder, for example. Banner ads are easily ignored (86% of consumers experience banner blindness!) – but TV ads have the power to reach a broader audience and make a lasting impression.
TV ads vs online video ads
Online video advertising (such as pre-roll ads on YouTube) has similarities with TV advertising in that it has a broad reach and visual impact. However, it also has a lower barrier to entry, which means the competition is fiercer.
The flip side to that? Most online video ads show in outstream units, on autoplay. Worse, some publishers misrepresent outstream units as “instream” units to inflate CPMs, and many of them, despite being “unskippable,” can easily be ignored simply by scrolling past them or clicking the X and shutting them down. While watching a couple of ads at halftime might be OK with most people and are more-or-less accepted by broad audiences already acclimated to pre-roll and mid-roll ads, it’s not as great when these outstream ads are intrusive and interrupting, sometimes covering up the content the consumer is trying to read. This kind of annoyance simply makes for a very low customer experience.
Moreover, online video ads usually live on small screens: smartphones, tablets, and so on. Even when they are in full-screen mode, they still don’t have the same effect as an ad that plays on a large TV screen (the largest screen in the house.)
Yes, online ads might have a lower barrier to entry. And yes, they might be effective in some cases, such as watching a pre-roll ad that comes on before a rerun of the show on your tablet. But at the end of the day, TV ads are just better for customer experience, reach, building trust, and memorability.
Top advantages of TV advertising
Let's say you are already on the fence about whether you should start advertising on TV. Here are some of the top advantages to consider:
Broad reach and high exposure
TV ads have the potential to reach a massive audience, including diverse age ranges and demographics. Yes, the number of linear TV households is declining every year, but the number of linear TV households is still a very large number – about 90mm households as of 2024 (see for yourself by accessing our free planning tool on TV+). Right now, between CTV and linear TV, more than 110 million households in the US own and watch at least one form of television. That's a lot of potential reach, which makes TV an effective medium for scaled brand awareness and exposure, especially when you adopt a holistic cross-channel approach that spans linear and connected TV. Plus, unlike social media or online ads, where people can scroll by or click away, TV ads have the benefit of capturing a more captive audience.
Brand credibility and trust
TV is still perceived as a reputable and trustworthy source of information compared to online ads, which can be seen as intrusive and untrustworthy. By appearing on TV, your brand can benefit from this perception of trust and credibility, making it easier for potential customers to trust and buy from you.
As for consumers, Kantar’s research shows that 20% of people trust offline sources (like TV, radio, and newspapers) more, and only 11% say the same about online sources (such as YouTube ads, Google Ads, social ads, and so on). This is not to say online ads aren’t effective or useful – a well-timed and strategized combination of online and offline advertising can be a complete game changer for virtually any business.
Visual impact
TV ads are visually compelling. They use music, motion graphics, storytelling techniques, and more to create an emotional connection with the audience. This visual impact can have a more significant effect on the viewer than text-based or static online ads, which do not have the same ability to evoke emotions.
Brand affinity and awareness
TV ads are more effective at creating brand affinity and awareness than online ads. With TV, you can tell a story or showcase your product or service in a way that resonates with the audience on an emotional level. Additionally, by being in front of viewers more frequently (through multiple ad spots), you can increase brand recall and recognition.
Exclusivity and prestige
TV ads are still seen as “too exclusive,” given the high production costs and airtime rates – the truth is a lot more nuanced, though. Ads don’t have to cost millions to produce and run on national TV – however, the perception of viewers will most likely assign your brand with the idea of “worth” associated with airing adjacent to professionally-produced, premium content.
Top disadvantages of TV advertising
TV advertising is not perfect (nor is online advertising, for that matter.)
The main drawbacks of TV advertising include:
High production costs
Producing a high-quality TV ad can be costly, especially if you want to compete with other established brands. From scriptwriting, hiring actors and crew, location fees, and post-production editing, the expenses add up quickly. For smaller businesses or startups, this can be a significant barrier to entry for TV advertising.
However, direct-to-consumer ads and user-generated content, and soon AI-based video ads, will become more popular in recent years, making TV advertising more accessible and affordable to businesses of all sizes. Contrary to popular belief, you don't have to have a massive budget to go big on TV.
Limited targeting options
TV ads can reach a broad audience, but most marketers believe they lack the granular targeting options that online advertising offers. Traditionally, TV doesn't allow you to be very specific with your audience's demographics or interests, for example -- but mostly relies on age and gender as the basic targeting units. Interest, affinity, behaviors, habits – they all slip through the cracks in traditional TV advertising.
Modern data-driven linear TV advertising, however, has long bypassed this problem. Platforms like Simulmedia, for example, work with a selective set of high-quality data providers to create niche audiences you can use to build the perfect media plan to efficiently reach as much of your niche/strategic audience as efficiently as possible. Buying ads on traditional TV may still not be as granular nitty-gritty as some digital advertising, but it does one thing better than social, search, and online banner ads: it gets to people who are not as likely to scroll, skip, or click “X” on your message.
Difficulty in measuring outcome effectiveness
Generally, TV ads are considered less measurable than their online counterparts. In part, that is true -- online ads are traceable because when your goal is an action (i.e., a conversion, a download, a purchase, etc.), you can track it directly, from impression to click and then to purchase. Still, it’s worth noting that this level of detailed measurement is slowly going away (with third-party cookies being phased out on Google – and other platforms in the future).
The reality is, however, that one person could see your ad, social posts, and organic content multiple times before they buy. Marketing, after all, is a team sport. So while attribution in online advertising is more transparent, it isn't necessarily more accurate (it’s just as accurate as your attribution model – and likely to circle back to basics once third-party cookies are phased out.)
That being said, modern TV advertising has also made strides in measuring effectiveness by incorporating data and analytics to track audience engagement and conversions from the TV to other home devices, such as laptops, tablets, or phones. Measurement devices like incremental lift measurement and spike-level attribution help you determine the effectiveness of your ad probabilistically. For instance, if your ad ran at 9:04 PM and by 9:14 PM your website received a spike in traffic, it is probably your ad at work.
TV is a broadcasting medium
In most contexts, the fact that TV is a broadcasting medium is useful and wanted. After all, you want your ad to be shown to as many people as possible, right?
Yet, unlike online ads, TV is not a one-to-one dynamic channel. Modern technology will provide you with info on a significant chunk of your unreached target audience and what shows, networks, or dayparts they’re likely to watch. Still, when you buy that spot, you will show your ad to both people within your target audience and other people who just “happen” to be there.
The ground rules of advertising on TV
The audience's mindset when exposed to a TV ad often differs from their mindset when coming across a digital ad. Online ads, be they social, search, banner, or outstream video, need to stop people from scrolling and make them pay attention and not skip the ad. TV ads, however, have a slightly more nuanced approach to capturing attention: they take viewers from a state of passivity (watching their shows) to a state of engagement.
So, what are the rules for creating effective TV ads? Here are some ground rules:
Define your objectives
Before you begin creating your ad, it's important to define your objectives. What do you want to achieve with your campaign? Are you looking to increase brand awareness, drive sales, or promote a specific product or service? Having a clear understanding of your objectives will help you create an ad that is tailored to your needs and is more likely to achieve your desired results.
Identify your target audience
Once you've defined your objectives, you'll need to identify your target audience. Who are you trying to reach with your ad? What are their interests and habits? Understanding your target audience will help you create an ad that resonates with them and is more likely to be successful.
Create a compelling ad
The key to a successful TV ad is creating a compelling message that resonates with your target audience. This means creating an ad that is visually striking, emotionally compelling, and easy to understand. By utilizing the power of sight, sound, and motion, you can create ads that are more likely to make an impact on viewers and achieve your desired results.
Test your ad
Before you launch your ad, it's important to test it with a small group of people. This will help you identify any issues or areas for improvement before you launch your ad to a wider audience.
Measure your results
Once your ad is live, it's important to measure your results. This will help you understand how your ad is performing and identify areas for improvement. By regularly monitoring your results, you can make adjustments to your ad and your campaign to improve its performance and achieve better results.
So - is TV advertising still effective?
Yes. Advertising on TV can be a powerful tool for businesses of all sizes. With the ability to reach millions of viewers and target specific demographics, you can use TV to drive your business objectives and promote your brand. Brands can create a successful TV advertising campaign that delivers real results by creating a compelling ad, testing it, and measuring its results.
Additionally, it's important to remember that TV advertising is not a one-time investment. To make the most of your campaign and achieve the best results, it's important to evaluate and refine your ad and your approach continuously. This may involve experimenting with different targeting methods, adjusting your ad's creative elements, or changing the timing of your campaign.
Another important aspect of advertising on TV is to consider the placement of your ad. A prime-time slot during a popular show can be expensive but will reach a large audience. However, you can also consider cable TV or local channels that can be more affordable but still reach your target audience since they may be more cost-efficient. And, of course, always take a cross-channel approach and reach younger folks who have moved exclusively to connected TV.
Finally, it's important to work with a reputable creative advertising agency that can help you create a compelling ad, and a TV ad-buying partner who can then place that great ad in the right spots and measure your results, whether that’s reach, website visits, or other business outcomes. These experts will have the knowledge and expertise to help you create an ad that makes the most of sight, sound, and motion to achieve your desired results.
Find out how Simulmedia’s unique TV+® platform for TV and streaming advertising provides unified access to premium linear and CTV inventory across all networks and publishers. Request a demo or email us at advertise@simulmedia.com.